The government took 29 confusing old labour laws and replaced them with just four new ones. The goal? Make things simple. Let’s be real, the only thing most people care about is:
How does this hit my wallet and my job?
Read More: Bank FD: Deposit ₹1,00,000 and get fixed interest of ₹38,723, check return details
1. Your Salary: Less Take-Home Today, More Savings Tomorrow
This is the big one. Your company splits your pay into two parts: your Basic Salary and Allowances (like HRA, travel, etc.). Companies used to keep the Basic Salary very low. Why? Because contributions to your PF (Provident Fund) and Gratuity are calculated on the Basic Salary. Low Basic = Low Contribution.
The New Rule, Explained Simply:
-
The Cap: Your company can no longer make allowances more than 50% of your total salary. X happened.
-
The Change: This forces your Basic Salary to go up. And then Y followed: your PF and Gratuity contributions must increase significantly.
-
The Catch: Higher PF contribution means a huge boost to your retirement savings. That’s your long-term security. But here’s the kicker—that money is now deducted, so your monthly take-home salary (the cash in hand) will likely go down slightly.
Read More: Bank FD: Deposit ₹1,00,000 and get fixed interest of ₹38,723, check return details
It’s a trade-off: Future security over current spending.
2. The 48-Hour Week & Overtime Pay
Before, working hours were messy. Different rules everywhere.
-
Standard Rule: Working hours are now capped at 48 hours per week. Predictable. Or nothing.
-
The Extra Hours: If your boss makes you work extra, the law now says you must get double the normal pay for overtime. Clearer. And then they have to pay you on time, every time.
Read More: Bank FD: Deposit ₹1,00,000 and get fixed interest of ₹38,723, check return details
3. Big Wins for Women & New Workers
The government basically said: equal work, equal pay. Simple.
-
For Women: No more bans. Women are now allowed to work in all sectors, even underground mining or heavy machinery. They can do night shifts too, but only with their consent and proper safety. It’s about giving them every chance to earn more.
-
For Fixed-Term Jobs: If you’re hired for a fixed time (like a one-year contract), you now get the same benefits as a permanent employee. And here’s the kicker: you can get Gratuity after just one year of service, instead of waiting five years. That’s huge for job security.
Read More: Bank FD: Deposit ₹1,00,000 and get fixed interest of ₹38,723, check return details
4. Finally, Help for Gig Workers (The Zomato/Ola Guys)
This is a massive shift, especially for India’s unorganized sector.
-
Formal Recognition: The codes formally recognize Gig and Platform Workers—the drivers, the delivery riders, the freelance coders. They were invisible before.
-
Benefits: Now they are eligible for social security like Provident Fund (PF), state insurance (ESIC), and maternity benefits.
-
The Platforms Pay: The companies that use these workers (the aggregators like Zomato, Swiggy, Ola, etc.) may have to contribute money to a specific social security fund for them. X happened. And then the workers get a safety net.
Look, this entire system is still settling. The goal is to make benefits transparent and legally enforceable. Your retirement savings are safer. The downside is that your monthly budget might feel the pinch right now. It’s ongoing.
Read More: Bank FD: Deposit ₹1,00,000 and get fixed interest of ₹38,723, check return details
We have taken all measures to ensure that the information provided in this article and on our social media platform is credible, verified and sourced from other Big media Houses. For any feedback or complaint, reach out to us at businessleaguein@gmail.com
Add businessleague.in as a Preferred Source
